Question

Michael Peterson is seeking to accumulate $25,000 in six years to invest in a real estate venture. He can earn 6.35 percent a
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Answer #1

n = 6 years * 12

= 72

R = 6.35 /12

= 0.529167

Present value = $25,000 * PVF (72, 0.529167)

= $25,000 * 0.68386

= $17,097

$17,097 is the correct answer.

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